Mortgage Calculator
Calculate your monthly mortgage payment, total cost, and interest breakdown.
Monthly Payment
$
Loan Amount
$
Total Payment
$
Total Interest
$
Principal: $
Interest: $
Principal (%)
Interest (%)
Formula
M = P[r(1+r)n] / [(1+r)n - 1]
M = monthly payment
P = loan principal (home price minus down payment)
r = monthly interest rate (annual rate / 12)
n = total number of payments (years x 12)
Frequently Asked Questions
How is a monthly mortgage payment calculated?
Monthly mortgage payments use the formula M = P × r(1+r)^n / ((1+r)^n – 1), where P is the loan principal, r is the monthly interest rate, and n is the total number of payments. A $300,000 loan at 6.5% for 30 years results in approximately $1,896/month.
What is the difference between a 15-year and 30-year mortgage?
A 15-year mortgage has higher monthly payments but much lower total interest. For a $300,000 loan at 6.5%, a 30-year mortgage costs $1,896/month ($382,560 total interest), while a 15-year mortgage costs $2,613/month ($170,340 total interest), saving over $212,000.
How much house can I afford?
A common guideline is the 28/36 rule: housing costs should not exceed 28% of gross monthly income, and total debt should stay below 36%. On a $6,000/month income, your maximum mortgage payment would be about $1,680. Lenders also consider credit score, down payment, and debt-to-income ratio.
Should I make extra mortgage payments?
Extra payments reduce the principal faster, saving significant interest over the loan term. Adding just $100/month to a $300,000, 30-year mortgage at 6.5% saves about $56,000 in interest and pays off the loan nearly 5 years early.